We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 13 February 14
DRY BULK MARKET FACES BETTER PROSPECTS ON THE BACK OF IMPROVING DEMAND AND SUPPLY BALANCE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has started off the New Year on the "left foot", with the strong finish of 2013 proving to be unsustainable, on the back of low seasonal demand. As a result, freight rates fell across the board, although the Handysize market is still close to a three-year high. In its latest report on the market, issued yesterday, BIMCO said that it believes that "the level of Capesize TC average rates will remain and stay around USD 4,500-10,000 per day. Panamax TC average rates will stay in the region of USD 5,000-11,000 per day. For the Supramax segment, BIMCO forecasts freight rates in the USD 7,000-11,000 per day interval, whereas Handysize rates are expected to stay strong in the region of USD 7,000-9,500 per day".
In his outlook on the market, BIMCO's Chief Shipping Analyst, Mr. Peter Sand noted that "as Q4-2013 was a massively strong quarter, the seasonal slowdown in Q1-2014 is likely to weigh a bit heavier than normally on freight rates. A drop of 8.8% in selected commodity volumes represent a clear seasonal direction in Q1, but if we look a bit further into the remaining three quarters, they all provide a solid rebound in demand. Chinese iron ore imports especially, but also the dry bulk market in general, is trailing off around the Chinese New Year season" he stated.
According to the report, "demand will be lower than in undisrupted months and thermal coal demand begins to ease as the Winter season in the northern hemisphere loses its grip. General shipping of nickel ore and bauxite will be far below normal levels because of the Indonesian ban– this in itself represents a change in demand beyond seasonality. Similar to the trend forecast in BIMCO Reflections 2014, demand will be centred on the major commodities. That trend has already affected Capesize rates in the most brutal way, as earnings have now entered into the sub-USD 10,000 per day zone; a decline of some 75% since early December".
Meanwhile, "in all the other segments volatility is more subdued, and over- and undershooting (up or down) seen to a lesser extent. At the end of January, Handysize tonnage is still earning in excess of USD 10,000 per day on a T/C average. This is a three-year high.
Q1 holds little room for upside, with most focus being on weather related disruptions in e.g. Australia to intrude on normal trading as well as regulatory issues affecting not just Indonesian exports but Columbian coal exports and Indian exports/imports in general, e.g. via export duties. As demand in volumes grew by 5.4% in 2013, the fundamental market balance only improved if slow steaming was applied more extensively. BIMCO believes that was the case, but only marginally. For 2014, an improvement in the market balance is clearly achievable. For it to materialise, owners and operators need to apply slow steaming to at least the same extent as last year. Only by managing the supply side carefully will higher earnings follow in the wake", it was noted.
Supply
In terms of supply, which is equally if not even more crucial to the long term viability of the industry, BIMCO said that "the demolition side of shipping will be amongst the “ones to watch” in 2014. As the order book keeps building up and eventually brings around more newbuild tonnage to cater for demand, owners might consider taking advantage of the strong demolition prices currently available to let go of less efficient ships.
In 2013, 22.2 million DWT was demolished, mostly in the smaller segments. This was 50% below the level of 2012 but considered a strong number, one that is unlikely to be repeated this year. The average age of a scrapped Capesize was 24, whereas the average demolished Handysize vessel was 30 years of age. Going forward, try to consider this as a potential scenario: the current stock of dry bulk shipping capacity equals 728 million DWT. All ships built in 1993 or earlier comprise just 68 million DWT, which is less than 10%. In comparison, taking out all ships beyond the average scrapping age in recent years (29 years), comprises just 20 million DWT. History tells us that is unlikely to happen, especially in a rising market. Thus, BIMCO forecasts 14 million DWT (or 1.9% of the current fleet) will be demolished in 2014. The fleet grew by 40 million DWT net in 2013, equal to 5.9%. BIMCO forecasts that 2014 holds 47 million DWT of newbuild capacity in store, which will be offset by 14 million DWT, leaving the fleet to bring supply growth of 4.5% around. Such a growth rate denotes an 11-year low. 2015 is already set for higher growth rates, so 2014 represents a short temporary dampening of the high growth of the fleet", it was mentioned.
"As regards the orderbook, the number of new Panamax orders has been extremely slim, in 2013 accounting for just 16% of the capacity ordered. This is a clear counterbalancing statement by the industry in response to the high fleet growth seen in that segment in the previous 15 months. Despite new orders for 197 Capesizes and 80 million DWT in total, the size of the dry bulk fleet today means that the orderbook-to-fleet ratio in the Capesize segment and total dry bulk fleet lands at just 20.5% and 20.7% respectively", the report concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 15 January 14
INDONESIAN MINING LAW AVERTS BOP PRESSURE, RISKS REMAIN, FITCH SAYS
The last-minute intervention at the weekend by Indonesia's politicians to avert a significant disruption of mining activity and exports, should lim ...
Wednesday, 15 January 14
Q3 AND Q4 INDONESIAN COAL SWAPS DECLINE MONTH ON MONTH
COALspot.com – Sub-Bit Indonesia coal swap (FOB) for average Q1’ 14 delivery lost $ 1.23 pmt month on month on Friday 10 January 2014. T ...
Wednesday, 15 January 14
PANAMAX: PACIFIC - REMAINED QUIET; ATLANTIC - CONTINUED THEIR RETREAT
COALspot.com: The holiday hangover seems well underway for the Dry Bulk market that saw more ground being lost this past week. The BDI has closed of ...
Tuesday, 14 January 14
AUSTRALIAN NEWCASTLE PORT'S WEEKLY COAL EXPORTS FALL 18.28 %
COALspot.com: In the week ended January 13, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled 2.67 ...
Monday, 13 January 14
INDONESIAN ORE BAN TO HAVE LIMITED IMPACT ON CHINESE ALUMINIUM PRODUCERS, FITCH RATINGS SAYS
COALspot.com: Fitch Ratings says today that Indonesia's ban on exports of unprocessed mineral ore will have limited impact on Chinese aluminium pro ...
|
|
|
Showing 3906 to 3910 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Wilmar Investment Holdings
- Sical Logistics Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Edison Trading Spa - Italy
- GN Power Mariveles Coal Plant, Philippines
- Globalindo Alam Lestari - Indonesia
- Lanco Infratech Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Trasteel International SA, Italy
- Billiton Holdings Pty Ltd - Australia
- Thai Mozambique Logistica
- Larsen & Toubro Limited - India
- Borneo Indobara - Indonesia
- Essar Steel Hazira Ltd - India
- Kepco SPC Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Aboitiz Power Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining Corp, Philippines
- Energy Link Ltd, New Zealand
- Ministry of Transport, Egypt
- Chettinad Cement Corporation Ltd - India
- Eastern Energy - Thailand
- White Energy Company Limited
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Posco Energy - South Korea
- Altura Mining Limited, Indonesia
- Global Business Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- ASAPP Information Group - India
- Riau Bara Harum - Indonesia
- Meralco Power Generation, Philippines
- The University of Queensland
- Kohat Cement Company Ltd. - Pakistan
- PNOC Exploration Corporation - Philippines
- Orica Mining Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Dalmia Cement Bharat India
- LBH Netherlands Bv - Netherlands
- Rio Tinto Coal - Australia
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- Port Waratah Coal Services - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Coal Association
- Ind-Barath Power Infra Limited - India
- Vedanta Resources Plc - India
- Videocon Industries ltd - India
- Bhushan Steel Limited - India
- PTC India Limited - India
- Coal and Oil Company - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Baiduri Energy - Indonesia
- Gujarat Sidhee Cement - India
- Commonwealth Bank - Australia
- Medco Energi Mining Internasional
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Global Green Power PLC Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- South Luzon Thermal Energy Corporation
- Attock Cement Pakistan Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chamber of Mines of South Africa
- Bayan Resources Tbk. - Indonesia
- Deloitte Consulting - India
- Uttam Galva Steels Limited - India
- Straits Asia Resources Limited - Singapore
- Marubeni Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Pendopo Energi Batubara - Indonesia
- Bukit Makmur.PT - Indonesia
- Baramulti Group, Indonesia
- Kaltim Prima Coal - Indonesia
- MS Steel International - UAE
- PetroVietnam Power Coal Import and Supply Company
- Mjunction Services Limited - India
- Parliament of New Zealand
- Simpson Spence & Young - Indonesia
- Mintek Dendrill Indonesia
- Banpu Public Company Limited - Thailand
- GAC Shipping (India) Pvt Ltd
- Electricity Authority, New Zealand
- IEA Clean Coal Centre - UK
- Tamil Nadu electricity Board
- Latin American Coal - Colombia
- Minerals Council of Australia
- Savvy Resources Ltd - HongKong
- Sakthi Sugars Limited - India
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- Wood Mackenzie - Singapore
- ICICI Bank Limited - India
- Kobexindo Tractors - Indoneisa
- Coalindo Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- CNBM International Corporation - China
- IHS Mccloskey Coal Group - USA
- Kideco Jaya Agung - Indonesia
- The Treasury - Australian Government
- Agrawal Coal Company - India
- Interocean Group of Companies - India
- CIMB Investment Bank - Malaysia
- Siam City Cement - Thailand
- Holcim Trading Pte Ltd - Singapore
- Mercator Lines Limited - India
- VISA Power Limited - India
- Ministry of Mines - Canada
- Iligan Light & Power Inc, Philippines
- Africa Commodities Group - South Africa
- Heidelberg Cement - Germany
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Oldendorff Carriers - Singapore
- Price Waterhouse Coopers - Russia
- Bhoruka Overseas - Indonesia
- SMC Global Power, Philippines
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- Australian Commodity Traders Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Orica Australia Pty. Ltd.
- Antam Resourcindo - Indonesia
- Madhucon Powers Ltd - India
- Star Paper Mills Limited - India
- Carbofer General Trading SA - India
- Sinarmas Energy and Mining - Indonesia
- India Bulls Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- AsiaOL BioFuels Corp., Philippines
- Metalloyd Limited - United Kingdom
- Jaiprakash Power Ventures ltd
- Neyveli Lignite Corporation Ltd, - India
- Manunggal Multi Energi - Indonesia
- Malabar Cements Ltd - India
- GVK Power & Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- Xindia Steels Limited - India
- Ministry of Finance - Indonesia
- International Coal Ventures Pvt Ltd - India
- Cement Manufacturers Association - India
- Binh Thuan Hamico - Vietnam
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Timah Investasi Mineral - Indoneisa
- Indian Energy Exchange, India
- Central Electricity Authority - India
- Sindya Power Generating Company Private Ltd
- Indika Energy - Indonesia
- Planning Commission, India
- Kartika Selabumi Mining - Indonesia
- New Zealand Coal & Carbon
- Indo Tambangraya Megah - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Bangladesh Power Developement Board
- Aditya Birla Group - India
- Semirara Mining and Power Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Power Finance Corporation Ltd., India
- PowerSource Philippines DevCo
- Romanian Commodities Exchange
- Eastern Coal Council - USA
- Central Java Power - Indonesia
- Jindal Steel & Power Ltd - India
- Indonesian Coal Mining Association
- Krishnapatnam Port Company Ltd. - India
- Jorong Barutama Greston.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Anglo American - United Kingdom
- Sarangani Energy Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhatia International Limited - India
- Economic Council, Georgia
- Barasentosa Lestari - Indonesia
- Independent Power Producers Association of India
- European Bulk Services B.V. - Netherlands
- Therma Luzon, Inc, Philippines
- Mercuria Energy - Indonesia
- SMG Consultants - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Coastal Gujarat Power Limited - India
- Merrill Lynch Commodities Europe
- Kapuas Tunggal Persada - Indonesia
- Global Coal Blending Company Limited - Australia
- Maheswari Brothers Coal Limited - India
- Goldman Sachs - Singapore
- Ambuja Cements Ltd - India
- McConnell Dowell - Australia
- Formosa Plastics Group - Taiwan
- Intertek Mineral Services - Indonesia
- Indogreen Group - Indonesia
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Grasim Industreis Ltd - India
- Salva Resources Pvt Ltd - India
- Petron Corporation, Philippines
- Tata Chemicals Ltd - India
- Samtan Co., Ltd - South Korea
|
| |
| |
|
